Personal Precious Metals Trading Services
Introduction Features User's Guide Deferred Transactions Operating Procedure
Important Information Risk Notice
Personal Precious Metals Trading Services is an agency service provided by Industrial Bank which allows clients to buy and sell precious metals in the Shanghai Gold Exchange (SGE). As a financial member of the SGE, the Industrial Bank also provides agency services for fund clearing and delivery settlement.
In response to the increasingly diverse demands of investors, the Industrial Bank became the first bank in China to provide agency services for the trading of deferred delivery gold products on the Shanghai Gold Exchange for personal clients nationwide on January 19, 2009. Deferred delivery gold products are traded by way of deposit security. This move was an expansion on the physical gold trading services already provided by the Industrial Bank. On August 3, 2009, the Industrial Bank followed this up by successfully becoming an agent for deferred delivery silver trading on the Shanghai Gold Exchange. With this, the Industrial Bank now acts an agent for more traded commodities on the Shanghai Gold Exchange than any other commercial bank in China.
Multiple Channels
IB provides four ways for its clients to trade, namely via internet banking, mobile phone banking, telephone banking and over the counter in bank outlets (Trading of silver products is currently not available in the mobile and telephone banks).
Comprehensive Range of Products
Precious metal products of the Shanghai Gold Exchange for which the Industrial Bank acts as an agent include physical products and deferred delivery products, including Au 100g , Au99.99, Au99.95, Au(T+D), Au(T+N1), Au(T+N2) and Ag(T+D). These products are able to satisfy a diverse array of client demands.
Advanced System
Following the overall upgrade of the Bank's system, the new interface is more user-friendly, more means of conducting transactions have been provided and system stability has been enhanced.
Transparent Prices
Quotations are kept in real-time synchronization with the Shanghai Gold Exchange. All information is open and totally transparent.
Low Commission
IB strictly abides by the rates set by the Shanghai Gold Exchange. Numerous preferential offers are available according to different transaction amounts and daily deposit balances.
Quick Transactions
Purchases and sales can be made on the same day. T+0 trading and clearing means that conduct short-term trading on a daily basis.
Guaranteed Collection
Clients may withdraw their gold from any of the near 50 treasuries owned by the Shanghai Gold Exchange throughout the country. The quality of the gold is guaranteed by the Exchange.
Presently, there are no gold storage fees for personal clients. (No withdrawal of silver products)
Fund Safety
IB is a designated clearing bank of the Shanghai Gold Exchange. The Bank carries out dedicated account management to ensure the security of client funds.
Traded products: Au 100g , Au99.99, Au99.95, Au(T+D), Au(T+N1), Au(T+N2), Ag(T+D)
Quotation Unit: Gold - RMB/gram (accurate to two decimal places); Silver - RMB/kg (accurate to one place).
Trading Unit: All transactions are conducted in lots, wherein, one lot of Au99.95, Au(T+D), Au(T+N1), Au(T+N2) and Ag(T+D) is equal to 1000 grams and one lot of Au99.99 and Au 100g is equal to 100 grams.
Collection Unit: Au 100g :100 grams or multiples thereof; Au99.99: 1,000 grams or multiples thereof; Au99.95 is 3000 grams or multiples thereof.
The variety of Au(T+D), Au(T+N1) and Au(T+N2) contract delivery is Au99.95 (may be replaced by Au99.99for delivery). The minimum delivery amount is one lot. After delivery, clients may apply to collect gold as per stipulations regarding the withdrawal quantity of the corresponding gold. (Delivery declaration, neutral position declaration and delivery application are not open to Ag(T+D) products).
Trading Means: Personal internet banking, mobile phone banking, telephone banking and over the counter in bank outlets.
Trading Hours: Trading hours of the Shanghai Gold Exchange
20:50-02:30 Monday to Thursday
09:00-11:30 Tuesday to Friday (08:50-11:30 Monday)
13:30-15:30 Monday to Friday
(The first ten minutes of the first session is the time for call auction of deferred contracts. Physical gold products do not participate in call auction.)
The trading times and the time for call auction will be adjusted as the rules of the Shanghai Gold Exchange change.
Time of Collection Application:
Counter: Business hours of IB outlets
Online Banking: 24 hours Monday to Friday (except public holidays)
(The information above is subject to change. The rules and regulations released by the Shanghai Gold Exchange shall prevail)
Introduction
Deferred transaction of precious metals is a mode of physical transaction by way of deposit security through which the client may choose either delivery on the day of the transaction or deferral of delivery in contract trading, wherein there is a deferred compensation charge (deferred charge for short) to appease the conflict between supply and demand.
Transaction Rules
|
Varieties |
Gold |
Silver |
|
Trading unit |
1000gramslot |
1000grams/lot |
|
Quotation unit |
RMB/gram |
RMB/kg |
|
Minimum price change |
0.01RMB/gram |
1RMB/kg |
|
Daily floating limit |
±9% |
±12% |
|
Contract term |
Continuous transaction |
Continuous transaction |
|
Mode of physical delivery |
Delivery application |
Physical delivery is not available |
|
Trading hours |
Morning market: 9:00-11:30 (Monday 08:50-11:30); Noon market: 13:30-15:30; Evening market: 20:50-02:30 (No evening market on Friday) (Excluding legal holidays and close days announced by the exchange) |
Morning market: 9:00-11:30 (Monday 08:50-11:30); Noon market: 13:30-15:30; Evening market: 20:50-02:30 (No evening market on Friday) (Excluding legal holidays and close days announced by the exchange) |
|
Due date of deferred charge |
Collected daily by natural days for Au(T+D); collected on the last trading day every two months for Au(T+N1) and Au(T+N2) (No collection of deferred charge for close position before the delivery day). |
Collected daily by natural days for Ag(T+D). |
|
Deferred rate |
0.02%/day of the market value of Au(T+D) contract; 0.01%/two months of the market value of Au(T+N1) and Au(T+N2) contract |
0.015%/day of the market value of Ag(T+D) contract |
|
Time for delivery application |
15:00—15:30 |
Delivery declaration, neutral position declaration and collection application are currently not available for Ag(T+D) products. |
|
Time for neutral position application |
15:31—15:40 |
|
|
Class of delivery |
99.95% 3kg standard gold bullion (May be replaced by 99.99% 1kg standard gold bullion for delivery) |
|
|
Place of delivery |
Treasuries designated by Shanghai Gold Exchange |
|
|
Deposit security |
17% contract value for IB personal clients |
17% contract value for IB personal clients |
|
Commission charge |
The maximum commission charge on deferred gold delivery to IB personal clients will not exceed 0.18%, and that for spot gold products will not exceed 0.19%. |
The maximum commission charge on deferred silver delivery to IB personal clients will not exceed 0.15%. |
|
Way of delivery |
Physical |
Physical delivery is not available |
|
Percentage of penalty |
8% contract value |
8% contract value |
|
Trading code |
Au(T+D), Au(T+N1), Au(T+N2) |
Ag(T+D) |
|
Market |
Deferred market |
Deferred market |
|
Listed exchange |
Shanghai Gold Exchange |
Shanghai Gold Exchange |
Note: The transaction rules above are from the Shanghai Gold Exchange ( www.sge.com.cn ). IB will make the necessary adjustments following any change in these rules by the Shanghai Gold Exchange.
1. To gain access to precious metals transactions, clients are required to bring their IB Wealth Management Card and ID card to the outlet in which their account was opened, undergo a risk assessment and then fill out and sign Risk Disclosure Statement for IB Commissioned Precious Metals Investment , Agreement Form of IB Commissioned Precious Metals Transactions Service and Agreement on IB Commissioned Precious Metals Transactions . (Clients who have entered into agency service agreements with other members are required to terminate such agreements and provide the original gold trading code when signing the agreement to access precious metals transaction services over the counter).
2. Clients who have installed an IB online banking digital certificate may activate precious metal transaction services in IB personal online banking. (Clients who have entered into agency agreements with other members are required to terminate such agreements and input the original gold trading code when opening the account).
3. Clients who have signed an agreement for a commissioned gold transaction account and obtained access to deferred delivery product transaction services may trade in all precious metal deferred delivery products. (Contracted personal clients who have not obtained access to deferred delivery product may upgrade through online banking or over the counter).
4. After opening the account, clients may commence trading on the next trading day over the counter or via online banking, telephone banking and mobile phone banking.
5. Clients who require collection may submit an application over the counter or via online banking, telephone banking and mobile phone banking according to the amount of gold in storage and the actual demands of the client. IB counter staff will contact you promptly to complete the collection process.
1. The trading hours, trading units and delivery units stated above are governed by the Shanghai Gold Exchange. IB will make the necessary adjustments accordingly following any change in the rules of the Shanghai Gold Exchange.
2. As stipulated by the Shanghai Gold Exchange, any physical gold that has been withdrawn from the treasury by a personal client will not be allowed to re-enter the Shanghai Gold Exchange for trading or be put back in storage. IB currently does not provide delivery declaration, neutral position declaration and delivery application services for silver products, nor does it buyback physical gold at present.
3. The gold trading code given to personal clients by the Shanghai Gold Exchange is both totally unique and permanent. Please be sure to remember your gold trading code.
Although trading in precious metals, especially deferred delivery products, may bring about high investment returns, the risks involved are considerable and large losses could be incurred. Losses may exceed the initial deposit and additional deposit you have placed in the Industrial Bank.
Trading in precious metals involves risks, please make investment decisions with care.
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